We want to become first choice when people are thinking about a mortgage, credit card or a safe haven for their savings

Nick Kennett, Post Office Money

“It has only just started rolling out its current account, but I think it could steal customers from rivals, especially those who want local branch access.”

Britons have been notoriously slow to switch accounts, with 77 per cent still banking with the big four, but they are finally stirring from their apathy.

Last year 1.16 million people switched their current account, a 12 per cent rise on 2013, the Payments Council revealed.

Santander was the biggest beneficiary, with a net gain of 100,000 new customers in the first six months of 2014.

Many will have been attracted by the popular Santander 123 account. Halifax and Nationwide were also popular among account switchers.

The biggest losers were NatWest and Barclays, who each suffered a net loss of more than 30,000 customers.

David Mann, head of money at uSwitch. com, said: “Although these latest switching numbers are encouraging, it is a drop in the ocean. With just 1.16 million making the switch out of a possible 46 million, there is clearly much more to be done.”

He called on the challenger banks to offer better rates to encourage people to switch.

“There are highly tempting incentives on the market, for example, Clydesdale already offers £150 to switch and TSB offers 5 per cent interest on balances up to £2,000.”

David Black, banking specialist at Consumer Intelligence, also singled out TSB’s Classic Plus Current Account for praise, and said Tesco Bank is competitive for unsecured loans as well as its 0 per cent introductory credit card rates.

“The downside is that it is difficult to compare bank overdraft charges because of the array of differing tariff structures.”

Black said Virgin Money has a great chance to shake things up when it launches its much-anticipated current account.

“People should not be afraid of switching, it is easy and if you use the switch service you will find it automated, so direct debits and standard orders transfer with you.”